Microsoft is back after Yahoo!
Announced (rather bizarrely) on Sunday, the Redmond giant made the following statement:
In light of developments since the withdrawal of the Microsoft proposal to acquire Yahoo! Inc., Microsoft announced that it is continuing to explore and pursue its alternatives to improve and expand its online services and advertising business.
Microsoft is considering and has raised with Yahoo! an alternative that would involve a transaction with Yahoo! but not an acquisition of all of Yahoo! Microsoft is not proposing to make a new bid to acquire all of Yahoo! at this time, but reserves the right to reconsider that alternative depending on future developments and discussions that may take place with Yahoo! or discussions with shareholders of Yahoo! or Microsoft or with other third parties.
There of course can be no assurance that any transaction will result from these discussions
So the bad cop approach didn't work and now Microsoft is playing good cop. In all fairness the company doesn't need to buy the whole of Yahoo! (here's why), but it could benefit from acquiring some of its more pertinent technologies. Yahoo! itself may also relish the chance to refocus its core business while lining the pockets of major shareholders.
Expect something (far more sensible and constructive) to come from this over the next few weeks...